By Micah Jonah
January 12, 2026
The Singapore government has defended the investment performance of its sovereign wealth fund GIC and state investor Temasek, saying their return remain reasonable, and within expectations given their long term mandates and risk profiles.
The defence comes amid growing scrutiny from lawmakers and analysts over the performance of the two influential investors, which together manage hundreds of billions of dollars in assets. Questions intensified, following a Financial Times report in December which described Singapore’s sovereign wealth returns as poor when compared with global peers.
Speaking in parliament on Monday, Senior Minister of State for Finance Jeffrey Siow said the government prioritises long term investment performance over short term or year to year fluctuations.
“Our focus has always been on long term performance rather than short term swings,” Siow said during a live streamed session.
Temasek reported a 10 year total shareholder return of 5 percent for the year ended March 31, 2025. This lagged the MSCI All Country World Index, which returned nine percent, and Singapore’s Straits Times Index, which gained 6 percent over the same period. However, Temasek’s 20 year return of 7 percent is broadly in line with both benchmarks.
Addressing concerns that Temasek’s long term returns only match broader market performance despite its exposure to unlisted assets, Siow said such comparisons are not always meaningful.
He explained that Temasek differs from traditional sovereign wealth funds because it operates as an active, bottom up investor and has historical roots as a holding company for Singapore portfolio firms.
GIC’s 20 year annualized real return stood at 3.8 percent for the year to March 31, 2025, slightly lower than the 3.9 percent recorded a year earlier. It marked the fund’s weakest performance since 2020, when returns fell to 2.7 percent.
Both institutions have faced setbacks in recent years. Temasek wrote down a 275 million dollar investment in the collapsed cryptocurrency exchange FTX and later reduced senior executive pay following an internal review. One of its portfolio companies, Indonesian aquaculture technology startup eFishery, is also under investigation over alleged misconduct including fraud.
Temasek managed a portfolio valued at 434 billion Singapore dollars as of March 2025 and is expected to launch a new organizational structure from April 1.
GIC has also been in the spotlight after filing a lawsuit in the United States against Chinese electric vehicle maker NIO, alleging that the company and two executive members misled investors by withholding key information about its business and prospects.
Siow stressed that the Singapore government does not interfere in Temasek’s individual investment decisions and works closely with GIC’s board to ensure its mandate is properly executed.
He added that in an uncertain, volatile global investment environment, short term losses or weak returns are possible, however, Singapore is well positioned to absorb such shocks.
“GIC’s returns over shorter periods could be low or even negative,” Siow said. “But the government is able to absorb these fluctuations because it has a strong balance sheet.”
The government’s remarks aim to reassure the public and investors that despite market volatility and recent criticisms, Singapore’s sovereign investors remain aligned with their long term objectives.
